Judge Nixes Bid To Name DBSI Trustee In Racketeering Case

Law360, Wilmington (August 3, 2012, 4:48 PM EDT) -- A Delaware bankruptcy judge on Thursday quashed traffic data company Wavetronix LLC's bid to go after the liquidating trustee for DBSI Inc. in a federal racketeering suit, finding that the defunct real estate investment firm's Chapter 11 plan barred the claims.

Wavetronix received more than $21 million in funding from DBSI before DBSI sought court protection in Delaware, where a bankruptcy examiner subsequently concluded that DBSI management had conducted a massive Ponzi scheme that defrauded investors of some $500 million.

On May 17, Wavetronix filed a...
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